C3D asks Panel to stop clock on bid

By Alistair Osborne

12:00AM BST 04 Oct 2000

C3D Transport, the French group, has asked the Takeover Panel to stop the clock on its 650p-a-share hostile bid for Go-Ahead, the bus and rail group, after yesterday's intervention by the British government.

Kim Howells, the competition minister, asked the European Commission to refer the bid back on the grounds that "the proposed merger raises competition concerns in a distinct market in the UK". The EC has until October 20 to decide.

Although Mr Howells declined to specify, it is believed he wants the Office of Fair Trading to examine competition in the London bus market. Go-Ahead, through its ownership of the London General and London Central bus franchises, controls 18pc of the London market. C3D owns London United, with about 9pc. Together they would breach the usual 25pc threshold.

Mr Howells' intervention came on day 38 of the bid, the day before Go-Ahead's last chance to present new information under takeover rules. Yesterday, Go-Ahead was preparing to post its document, rejecting the bid and highlighting that "trading in the first three months of the year has been significantly ahead of budget".

C3D sources said Mr Howells' intervention was "not a deal breaker". Go-Ahead shares fell 35 to 695p. Stopping the clock will prevent the bid lapsing. It also means the outcome of Go-Ahead's bid for Connex South Central should be known within the 60-day bid timetable, while giving Go-Ahead longer to seek a white knight. SNCF has said it is considering a counterbid.